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With 24% YoY growth, NBFC-MFIs keep leading the lending pack: SIDBI-Equifax

While the highest number of loans are disbursed in Rs 20,000-30,000 ticket size across all quarters, 30 plus delinquency for NBFCs at 2.5 % is the highest in the industry in Q3 FY19, the joint report further noted.

ET Online | May 09, 2019, 02.12 PM IST

Registering a 24% YoY growth, country’s NBFC-MFIs, having a market share of 38% in Q3-FY19, continue to maintain their market dominance in the lending space, says the SIDBI-Equifax newsletter. 

With the total number of active loans standing at 8.22 crore at the end of Q3-FY 19, the segment’s Gross loan portfolio (GLP) stood at Rs 1,57,644 crore at the end of the same quarter -- registering a Q-o-Q growth of 7%. 

The Rs 30,000-40,000 loan category has witnessed the highest increase from 18 lakh loans disbursed in Q3 FY 18 to 29 lakh loans disbursed in Q3 FY 19, the disbursements have increased by 56 % on a Q-o-Q basis from Q3 FY 18 to Q3 FY 19, it said. 

The report while observing a hike of around 13% in the number of loans disbursed in Q3 FY18 to Q3 FY19, revealed that the average ticket size of the bank loan remains highest at Rs 40,434 whereas, for NBFC-MFIs loan, it's the lowest at Rs 25,891. 

While the highest number of loans are disbursed in Rs 20,000-30,000 ticket size across all quarters, 30 plus delinquency for NBFCs at 2.5 % is the highest in the industry in Q3 FY19, the joint report further noted. 

Microfinance industry has a presence in 615 districts in India whose 210 districts constitute 80% of the portfolio outstanding. As per industry body Microfinance Institutions Network (MFIN), the regional distribution of portfolio (GLP) of NBFC-MFI currently stands as: East and North-East (37%), South (25 %), North (14%), West (15%) and Central India (9%). 

 

Link to the piece - https://economictimes.indiatimes.com/small-biz/sme-sector/with-24-yoy-growth-nbfc-mfis-keep-leading-the-lending-pack-sidbi-equifax/articleshow/69249344.cms